Chinese company Great Wall Motor (GWM) is interested in buying Fiat Chrysler Automobiles (FCA), according to a GWM statement, made on Monday.
With respect to this case, we currently have an intention to acquire. We are interested in (FCA).
According to Reuters, Great Wall had contacted FCA and expressed specific interest in its Jeep brand. Moreover, Shanghai consultancy firm Automotive Foresight said that:
Jeep is the most logical choice since (Great Wall) wants to be the largest SUV maker in the world.
However, a FCA spokesperson said there had been no approach from Great Wall and that it was continuing with its four year growth plan.
In response to market rumors, regarding a potential interest of Great Wall Motors in the Jeep brand, Fiat Chrysler Automobiles confirmed that it has not been approached by Great Wall Motors in connection with the Jeep brand or any other matter relating to its business.
No specific details about the alleged transaction, have been made public, by any of the two companies.
Fiat Chrysler CEO, Sergio Marchionne, declared a few years ago that finding partners in the automotive industry is the key to success. He believes that auto makers need alliances to split R&D costs and to keep up on emerging technologies.
FCA shares rose 3.9% to €11.12 in early Milan trading, amid speculation that a Chinese company was circling the company or one of its units. Great Wall Motor shares were up almost 3% in Shanghai.